UNP Q2 Earnings & Revenues Beat Estimates, Up Y/Y, EPS View Raised

Operating revenues of $6.86 billion beat the Zacks Consensus Estimate of $6.65 billion and rose 11.5% on a year-over-year basis, driven by core pricing gains, volume growth and higher fuel surcharge revenues, partially offset by business mix. Revenue carloads declined 1% year over year.

Freight revenues (accounting for 95% of the top line) increased 12% year over year to $6.52 billion. Other revenues increased 11% year over year to $346 million in the second quarter of 2026.

Operating income increased 9% year over year to $2.76 billion. Total operating expenses of $4.10 billion inched up 13% year over year. Fuel expenses rose 63% year over year. Expenses on purchased services and materials increased 10% on a year-over-year basis, while expenses on compensation and benefits decreased 1% year over year.

The operating ratio (operating expenses as a percentage of revenues) in the second quarter of 2026, on an adjusted basis, improved 110 basis points year over year to 59.2%.

UNP’s Segmental Highlights

Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $2.04 billion, which increased 7% on a year-over-year basis. Segmental revenue carloads decreased 1% year over year to $514 million.

Industrial freight revenues totaled $2.39 billion, up 8% year over year. Segmental revenue carloads increased 3% year over year to $586 million.

Freight revenues in the premium division were $2.08 billion, up 21% year over year. Premium revenue carloads increased 4% year over year to $1.06 billion.

UNP’s Liquidity

Union Pacific exited the second quarter of 2026 with cash and cash equivalents of $1.16 billion compared with $1.27 billion at the quarter's end of 2026. Debt (due after a year) of $29.04 billion was down 4.14% compared with the December-quarter end of 2026 actuals.

UNP’s 2026 Outlook

For 2026, earnings per share are expected to register high-single digit growth, consistent with attaining the three-year CAGR target of high-single digit to low-double digit growth through 2027.

UNP further anticipates operating ratio improvement. Capital expenditure is expected to be approximately $3.3 billion. UNP aims to continue generating strong cash while increasing annual dividend payouts.

Currently, UNP carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Westinghouse Air Brake Technologies WAB, operating as Wabtec Corporation, reported encouraging second-quarter 2026 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.

Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.

United Airlines Holdings, Inc. UAL reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.

J.B. Hunt Transport Services, Inc. JBHT reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

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This article originally published on Zacks Investment Research (zacks.com).

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